Lorenzo Codogno and Giampaolo Galli: Populism and the Broken Engine of the Italian Economy

Italy is an anomalous case. It posted the lowest growth rates among the developed countries for about a quarter of a century. This anomaly can help to understand why the anti-establishment forces, which have also reaped successes almost everywhere in the Western world, gained a majority in the latest Italian elections. It also helps to understand the economic policy dilemma facing the country today.